KUALA LUMPUR (Aug 15): SamChem Holdings Bhd saw its net profit for the second quarter for financial year ended June 30, 2017 (2QFY17) fall by 26.3% to RM3.37 million or 1.51 sen per share from RM4.58 million or 3.36 sen per share in the corresponding quarter a year ago on lower gross margin and higher expenses.

This was despite SamChem’s revenue for the quarter growing by 41.3% to RM216 million compared with RM152.8 million in 2QFY16. The note filed with Bursa said the revenue growth was mainly due to the market positioning of the Group in the region.

For the financial year ending Dec 31, 2017 (FY17), the board of directors has declared a first interim single-tier dividend of one sen per share.

In the first half of financial year 2017 (1HFY17), SamChem’s net profit edged higher by 2% to RM8.38 million from RM8.22 million in 1HFY16 mainly due to the higher revenue generated in the first half this year.

The Group’s revenue grew by 38.8% in 1HFY17 to RM433.6 million compared with RM312.5 million recorded in the same period a year ago. The increase was mainly due to market positioning in the region.

Moving forward, the board of directors expect the Group’s performance for FY17 to be positive.  

As of closing, SamChem’s share price slipped by 1.26% to 78.5 sen with about 99,800 shares traded. Year-to-date, its share price has increased by 9.8% and has almost doubled from a year ago. At this level, it is trading at a trailing P/E of 13.5 times, giving it a market capitalization of RM213.5 million.